India’s crypto user base is getting younger and increasingly moving beyond the biggest cities, with Gen Z accounting for nearly half of new registrations on crypto exchange ZebPay during the first six months of 2026. More than 1.2 lakh users joined the platform between January and June, while Tier-2 and Tier-3 cities together generated 62 per cent of new registrations, according to ZebPay’s first half-yearly report on the Indian crypto market.
The findings, based on activity on ZebPay rather than the entire Indian crypto market, also point to a pronounced preference for accumulation among younger users. Those aged 18-24 recorded buying volumes nearly 10 times their selling volumes, while across all age groups users bought about 7 per cent more crypto than they sold during the period.
Gen Z leads new sign-ups
Users aged 18-24 accounted for nearly 50 per cent of ZebPay’s new registrations in the first half of 2026, making Gen Z the strongest driver of customer additions. Their investment preferences also differed from those of older participants, with Solana emerging as a preferred digital asset among younger users alongside stablecoins.
The 26-35 age bracket remained the largest segment of ZebPay’s overall user base and showed a more balanced approach to buying and selling. Investors aged 36-45 displayed a greater preference for Bitcoin but recorded selling volumes nearly twice their buying volumes, while users aged 45 and above held the largest average portfolios and recorded the highest trading frequency.
The demographic shift did not, however, translate into constant trading. Around 63 per cent of users holding crypto made no trades during the six-month period, suggesting that a sizeable portion of the platform’s customers preferred holding digital assets rather than frequently entering and exiting positions.
Smaller cities drive growth
The geographical distribution of new users showed another significant shift. Tier-2 cities contributed around 41 per cent of registrations and Tier-3 cities another 21 per cent, giving smaller cities a combined 62 per cent share. Metro and Tier-1 markets accounted for the remaining 38 per cent.
The top 10 states accounted for close to 67 per cent of registrations, indicating that participation remained geographically concentrated even as new users increasingly came from outside the largest urban centres. Tier-3 markets also recorded the smallest decline in registrations compared with the second half of 2025.
Trading behaviour presented a more complicated picture. Tier-2 cities recorded the sharpest decline in active traders and trading volume, while Tier-3 markets were the only category to register an increase in average order size. Metro markets, meanwhile, kept trading volumes broadly close to levels seen in the second half of 2025 despite recording more orders.
Bitcoin remains dominant
Bitcoin continued to dominate trading activity on the platform. It generated nearly four times Ethereum’s trading volume even though the two digital assets attracted a broadly similar number of traders, suggesting considerably larger average positions in Bitcoin.
Among categorised assets, Layer-1 cryptocurrencies generated nearly 90 per cent of trading volume, with Bitcoin alone accounting for around half of that segment. USDT remained the dominant trading pair, while Bitcoin, Ethereum, XRP and Solana were also among the most actively traded assets.
Portfolio data similarly showed Bitcoin’s continued hold over investors. Users classified by ZebPay as “Bitcoin Maximalists” constituted the largest portfolio segment at 30 per cent, followed by holders of older altcoins at 17.3 per cent and diversified crypto investors at 15 per cent.
Holding gains ground
Among active users, around 85 per cent participated in spot markets, while nearly 72 per cent used two or more features on the platform. Returning investors constituted 82 per cent of active users, compared with 18 per cent for new investors.
The most consistently active investors also accounted for a disproportionate share of trading. Users active during all six months of the January-June period generated around 21 times the trading volume of those who were active for only one month.
ZebPay’s findings provide a snapshot of behaviour on one crypto platform rather than a comprehensive measure of India’s overall cryptocurrency market. Still, the data indicate two clear shifts within its user base — younger Indians are increasingly driving registrations, while participation is spreading deeper into Tier-2 and Tier-3 cities.